The fund invests in companies that are priced at a discount to the intrinsic value. To select companies, the fund goes through a process. It selects only those companies that have good financial strength and relatively less prone to recession. The find invests 65-70% in mid-caps, 25-30% in small-caps, 5-10% in large-caps. On a three and five-year basis, it has outperformed its benchmark by 3 to 6 percentage points and category by 3 to 5 percentage points. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.17 lakhs now.

This fund’s strategy is a blend of growth and value styles of investing. The focus is on owning fundamentally strong and scalable businesses with a good management track record, at reasonable valuations. The fund’s asset allocation reveals a 15-20 percent allocation to small-cap stocks, while mid-cap allocation is about 80-85 percent, with the rest parked in large caps. This may result in a lower risk profile, while also moderating the returns from this fund. With 3-year and 5-year annualized returns of 17.81% and 23.05% respectively, the fund has outperformed its benchmark by 3 to 5 percentage points and peers by 3 to 5 percentage points. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.21 lakhs now.

The fund focuses its portfolio on mid-cap and small-cap funds, with more inclination towards the mid-cap businesses. It follows a growth at a reasonable price strategy. The fund consistently outperformed its benchmark in the last 8 years. With 14.90% and 20.77% 3 and 5 year returns respectively, it outperformed both of its benchmark and category. The five-year returns were 1 percentage point ahead of the benchmark and 2 percentage points more than category. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.09 lakhs now.

The fund predominantly invests in mid-cap companies. They include innovative and entrepreneurial companies with experienced management. They concentrate on high growth companies and market leaders in emerging industries. On three and five-year returns, it has outperformed both its benchmark and category by 2 to 3 percentage points. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.17 lakhs now.

This fund is a remarkably consistent performer in this category. The fund’s three-year return, at 15.91%, is 1 percentage point ahead of the benchmark and 2 percentage points ahead of its category returns. The five-year returns, at 20.48%, are 2 percentage points higher than both benchmark and category returns. What stands out in its annual returns is its ability to weather any kind of bear market. In 2008, 2011 and 2013, this was a rare mid-cap fund to contain losses to levels far lower than those of its benchmark. The popularity has resulted in rapid growth of the fund’s size, from under Rs 10,000 crore in early 2016 to over Rs 20,000 crore now. This makes it by far the largest fund in this category. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.08 lakhs now.

What are mid cap mutual funds?

Midcap schemes invest in mid-sized companies that have the potential to become large companies or leaders in their own field. However, their journey to greatness is not a smooth ride. Any negative news or development may have a huge impact on their stock prices. But, if they realize their potential, they may reward investors handsomely. This is the basic premise of investing in midcap schemes.

Simply put, they are risky and can be extremely volatile. But they also have the potential to offer extra returns to compensate for the higher risk you are taking. For example, some midcap schemes offered around 31.78 per cent and 16.71 per cent returns in the five- and 10-year periods respectively. Ideally, you should invest in a midcap scheme only if you have an investment horizon of at least 5 to 10 years. Don’t panic when things go bad, stay invested and you will get impressive returns at the end of your investment horizon.

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Portfolio returns and allocation between equity and debt are estimated based on a number of factors including the user's risk profile, goal horizon and disclosed financial position. Performance of any investment portfolio can neither be predicted nor guaranteed.